Bill Sponsorship: H.R.25 & S.155
Source: FairTax Act sponsored by 6 Senators and 64 Reps
Congressional Summary: This bill imposes a national sales tax in lieu of the current income and corporate income tax, employment taxes, and estate and gift taxes. The rate of the sales tax will be 23% in 2017, with adjustments in subsequent years. U.S. residents receive a monthly sales tax rebate (Family Consumption Allowance) based upon family size and poverty guidelines. No funding is allowed for the operations of the Internal Revenue Service after FY2019. Finally, the FairTax terminates if the 16th Amendment to the Constitution (authorizing an income tax) is not repealed within 7 years.

Supporters reasons for voting YEA: Rep. MORAN: I am all on board on tax reform, but the best solution is not tinkering with the current system; it is an overhaul of the current Tax Code. The FairTax, in my view, brings two goals front and center: to pass on to the next generation of Americans the freedoms and liberties guaranteed by our Constitution, and the
opportunity for every American to live the American dream.

Opponents reasons for voting NAY: (by FairTaxWarrior.com):

Criticisms from The Left

The FairTax rate is really 30%, not the 23% proponents say.

It's an additional national sales tax.

It's really just a windfall tax cut for the rich.

A sales tax is regressive, and punishes the poor unfairly.

It's just a scheme to let corporations escape paying taxes.

Criticisms from The Right:

The FairTax does nothing to cut government spending.

The 23% rate is too high.

It 's the largest welfare increase in history [via the Family Consumption Allowance]

General criticisms

The FairTax will negatively impact the housing market [by removing the mortgage deduction].

Black market activity will increase.

The IRS won't really be abolished.

The Flat (Income) Tax is a better option.

It will be a nightmare to transition to The FairTax from an Income Tax.